Tata Consultancy Services (TCS), India's largest information technology services exporter, has announced significant dividend payments for its shareholders alongside the release of its Q3 FY26 results on January 12, 2025. The IT giant has declared both interim and special dividends, demonstrating strong shareholder value creation during the quarter.

Dividend Declaration Details

The company has announced two separate dividend payments for its shareholders:

Key Dates for Shareholders

TCS has established important dates that shareholders need to be aware of for dividend eligibility:

Shareholders who hold TCS shares as of the record date of January 17, 2025, will be eligible to receive both the interim dividend of ₹11.00 per share and the special dividend of ₹46.00 per share.

Quarterly Results Context

The dividend announcement coincides with the release of TCS's third quarter results for fiscal year 2026. The declaration of both interim and special dividends alongside the quarterly earnings reflects the company's financial performance during the period and its commitment to returning value to shareholders.

The combined dividend payout of ₹57.00 per share represents a substantial distribution to TCS shareholders, with the special dividend component of ₹46.00 being particularly noteworthy as it exceeds the regular interim dividend amount.

Tata Consultancy Services reported mixed Q3 FY26 results, with consolidated net profit declining significantly while revenue showed modest growth. The IT services major's performance fell short of analyst expectations, highlighting challenges in the current operating environment.

Financial Performance Overview

The company's Q3 FY26 financial metrics compared to analyst estimates present a mixed picture:

The consolidated net profit of ₹10,657.00 crore represents a 14% year-on-year decline, significantly missing the Street consensus of ₹12,771.00 crore. However, revenue performance was marginally better than expected, with the company achieving ₹67,087.00 crore against estimates of ₹66,728.00 crore.

Shareholder Returns

Despite the challenging quarterly performance, TCS announced a dividend of ₹57.00 per share for shareholders, demonstrating the company's commitment to returning value to investors even during periods of subdued profitability.

Market Performance

TCS shares showed resilience on the results day, gaining 1.1% to close at ₹3,243.00 on the NSE. However, the broader trend remains concerning, with the stock losing more than 24% over the past year. The company's current market capitalisation stands at ₹11.75 lakh crore, reflecting investor concerns about the IT sector's near-term prospects.

Outlook Considerations

The Q3 FY26 results highlight the ongoing challenges facing India's largest IT services company. While revenue growth of 5% year-on-year indicates continued business expansion, the 14% decline in net profit suggests margin pressures and operational headwinds that the company is navigating in the current market environment.